JPMorgan Beats Revenue Estimates In Q4 – A Record Quarter For Wealth Unit Offsets Apple Card Drag

• Excluding a significant reserve item tied to the Apple Card portfolio, net income would have been $14.7 billion, the bank added.
• Consumer & Community Banking revenue climbed 6%, driven by higher deposits, increased card spending, and growth in wealth management fees.
• Asset & Wealth Management revenue rose 13% to a record $6.5 billion.

JPMorgan Chase & Co (JPM) reported fourth-quarter results on Tuesday, posting revenue of $46.8 billion, a 7% year-over-year increase and ahead of Wall Street expectations of $46.2 billion, according to Fiscal.ai data.

Net income for Q4 fell 7% to $13.05 billion, or $4.63 per share. This came in slightly below street estimates of $4.86 per share.

Apple Card Charges

Excluding a significant reserve item tied to the Apple Card portfolio, net income would have been $14.7 billion, the bank added. Last week, JPMorgan agreed to take over the Apple credit card business from Goldman Sachs. The deal will see the transfer of more than $20 billion in card loans to JPMorgan. The bank had said the transaction would take about 24 months to close and would include a $2.2 billion credit-loss provision, booked in its fourth-quarter 2025 results.

Breaking Down JPM Earnings

On a segment basis, Consumer & Community Banking revenue climbed 6% to $19.4 billion, driven by higher deposits, increased card spending, and growth in wealth management fees. Commercial & Investment Bank revenue also rose 10% to $19.4 billion, as a 17% jump in Markets & Securities Services more than offset weaker investment banking activity.

Asset & Wealth Management revenue rose 13% to a record $6.5 billion, driven by higher assets under management and performance fees, the bank said.

“The U.S. economy has remained resilient. While labor markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend, and businesses generally remain healthy. These conditions could persist for some time, particularly with ongoing fiscal stimulus, the benefits of deregulation and the Fed’s recent monetary policy,” said Jamie Dimon, Chairman and CEO.

Calls For Fed Independence

In a call with investors on Tuesday, Dimon reportedly warned that the U.S. Justice Department’s actions against the Federal Reserve could threaten the central bank’s independence and push borrowing costs higher. The comments came after the DOJ launched a criminal investigation into Fed Chair Jerome Powell related to a $2.5 billion renovation of the Fed’s Eccles Building.

“Everyone we know believes in Fed independence. And anything chips away at that is probably not a great idea. And in my view, will have the reverse consequences. It’ll raise inflation expectations and probably increase rates over time,” Dimons said, adding that he has “enormous respect for Jay Powell, the man.”

How Did Retail React?

Retail sentiment on Stocktwits shifted to ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes.

One user said anything above $325 is a short. The stock was trading at $324.4.

YTD, JPM shares have gained around 36%.

JPM shares were trading down 2.2% after the opening bell on Tuesday.

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